Toshiba announced on Thursday that it would eliminate up to 4,000 local jobs as it seeks a merger under new management.
Japan Industrial Partners
It went public in December following a $13 billion purchase by a consortium led by private equity company Japan Industrial Partners (JIP), ending a decade of scandal and instability.
Toshiba went Public
The consortium’s attempts to build a new chapter at Toshiba are viewed as an indicator for Japanese private equity, which was once dubbed “hagetaka”.
The reorganize involves up to 6% of local employees.
The company also announced that it would shift its headquarters from downtown Tokyo to Kawasaki, west of the capital, and aim for a profit margin of 10% in three years.
In Japan, which known for its rigid business climate, private equity firms are growing as an effective option for companies looking to get rid of other assets. Lately, several corporations have announced layoffs, including printer manufacturer Konica Minolta (4902.T).
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